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IFC Event {Can Green & Lean Go Together} – December 13 th, 20103 First off, The Field of SCM is Highly Difficult to Optimize The Uncanny Resemblance with Chaos Theory 1. Complex systems consist of a large number of elements. 2. The elements have to interact and this interaction must be dynamic. 3. The Interaction is fairly rich, i.e. any element in the system influences, and is influenced by, quite a few other ones. 4. Firstly, the interactions are non-linear. 5. The interactions usually have a fairly short range, i.e. information is received primarily from immediate neighbours. 6. There are loops in the interaction. 7. Complex systems are usually open systems, i.e. they interact with their environment. 8. Complex system operate under conditions far from equilibrium. 9. Complex systems have a history. Not only do they evolve through time, but their past is co-responsible for their present behaviour. 10. Each element in the system is ignorant of the behaviour of the system as a whole.

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IFC Event {Can Green & Lean Go Together} – December 13 th, 20104 … and In addition to Its Inherent Complexity Optimizing SCM requires Collaboration; Are We Wired for It? The Idea: Unlike ants and bees, humans aren't hard-wired for cooperation; we tend to act out of self-interest. That inclination repeatedly draws us into "social dilemmas" where, in an attempt to gain more for ourselves, we ultimately fare worse than we would have by cooperating. The evidence: The trick is to establish an agreement where everyone's self-interest is best served by cooperating. That means removing incentives to violate the agreement. The Conclusion: Businesses are nothing but federations of human beings. We think we’re different and unique and we behave in ways that protect and promote that uniqueness. We need to overcome some innate apprehensions to build a winning green value proposition for key supply chain partners http://www.newsweek.com/id/170380

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IFC Event {Can Green & Lean Go Together} – December 13 th, 201010 Where is the Carbon in the Supply Chain? Everywhere! Supply Chain activities create significant carbon emissions, making supply chain an important focus for clients seeking to reduce their carbon footprint Suppliers & Manufacturers Customers & Channels Design for the Environment Carbon footprint thinking throughout product lifecycle design Design for the Environment Carbon footprint thinking throughout product lifecycle design How can the total network be optimized considering service, cost, “green” tradeoffs What CO2 impact is there from various inventory concepts & planning methodologies How can the total network be optimized considering service, cost, “green” tradeoffs What CO2 impact is there from various inventory concepts & planning methodologies How can we best measure a supplier’s carbon impact (product, packaging, upstream logistics) and ultimately compliance with carbon reduction requirement? How should we evaluate carbon offsets? How can we best measure a supplier’s carbon impact (product, packaging, upstream logistics) and ultimately compliance with carbon reduction requirement? How should we evaluate carbon offsets? What operations strategy (facility location, operating model) provides the best trade-off between cost, service, carbon? Is there a role for sustainable factory / facility mgmt? What operations strategy (facility location, operating model) provides the best trade-off between cost, service, carbon? Is there a role for sustainable factory / facility mgmt? What distribution network strategy (facility locations, sizes, transport modes) provides the best tradeoff of cost, service and carbon? How can packaging be reduced and recycled? What distribution network strategy (facility locations, sizes, transport modes) provides the best tradeoff of cost, service and carbon? How can packaging be reduced and recycled? How can field service operations reduce carbon footprint with better routing and parts inventory tracking? Feedback loop to engineering to reduce impact Various strategies to reduce impact throughout lifecycle How can field service operations reduce carbon footprint with better routing and parts inventory tracking? Feedback loop to engineering to reduce impact Various strategies to reduce impact throughout lifecycle Flows: Product, Process, Information, Cash SC Strategy ProcurementProcurementLogisticsLogistics Integrated Ops PlanPlanSourceSourceMakeMakeDeliverDeliverDesignDesign Service & End-of-Life Asset Management Finance Sustainable facilities management: Green building & renewable energy; carbon footprint asset management; Asset utilization (Real-time data on energy usage; Carbon dashboard) Paperwork Reduction; Environmental Cost Accounting; Environmental Tax Benefits Tracking PLMPLM